Northern Territory Mineral Titles Regulation

Transcription

1 Northern Territory Mineral Titles Regulation

2 Contents Introduction - Northern Territory mineral titles The Mineral Titles Act A new Act Significant changes Types of mineral titles Ownership of minerals within the Territory Extractive and non-extractive minerals Status of titles granted, or applied for, under the Mining Act Exploration titles and preliminary exploration Preliminary exploration Mineral Exploration Licence (EL) Mineral Exploration Licence in Retention (ELR) Extractive Mineral Exploration Licence (EMEL) Mineral production titles Mineral Lease (ML) Extractive Mineral Permit (EMP) Extractive Mineral Lease (EML) Mineral titles on reserved land - Mineral authority (MA) Access and infrastructure General provisions applying to mineral titles Applications generally Conditions applying to mineral titles Expenditure requirements generally Mineral titles register Transfers and dealings Caveats Voluntary surrender Cancellation of mineral titles Environmental and compensation securities Reserves Land access issues Royalties Compliance and penalties for non-compliance Conducting mining operations Ratification Acts Aboriginal Land Rights (Northern Territory) Act Consent required for an EL Terms and conditions of an EL Cancellation of EL Consent required for a mining interest Pursuing mining interests Cancellation of mining interests Native title Extinguishment of native title and compensation The Native Title Act Future Acts Aboriginal cultural heritage Northern Territory Mineral Titles Regulation 2

3 Introduction - Northern Territory mineral titles Mining is the Northern Territory's largest industry, and vast areas of the Territory are highly prospective and under-explored. Between 1 July 2004 and 30 June 2010, mining production in the Northern Territory grew by 40.3% per annum driven largely by increasing demand from east Asia. The primary focus of this paper is mineral titles regulation in the Territory, that was recently overhauled by the newly enacted Mineral Titles Act 2010 (NT) (Mineral Titles Act). The paper provides an overview of Territory laws and regulations in respect of: types of mineral titles and the process for applying for, and maintaining, mineral titles; the major rights and obligations under the various mineral titles; transfers and dealings in mineral titles and registration of dealings; dealings with underlying landowners; the Aboriginal Land Rights (Northern Territory) Act 1976 (Cth); and native title and Aboriginal and cultural heritage issues. Mineral titles are regulated primarily through: the Mineral Titles Act; and the Mineral Titles Regulations 2010 (NT) (Mineral Titles Regulations). The Mineral Titles Act and Mineral Titles Regulations are administered by the Minister for Primary Industry, Fisheries and Resources (the Minister). In focussing on the regulation of mineral titles, this paper does not consider in detail other important laws that regulate the conducting of exploration and mining activities in the Territory, such as: the Mining Management 2001 (NT) that applies to all mining sites and activities and regulates the conducting of mining operations, most importantly from an environmental perspective; environmental laws and regulations including the Environmental Assessment Act (NT) and the Environment Protection and Biodiversity Conservation Act 1999 (Cth); and laws regulating occupational health and safety in conducting exploration and mining activities, including the Workplace Health and Safety Act 2007 (NT). For specific advice or further information about the regulation of exploration and mining activities in the Northern Territory, please contact the following Clayton Utz resources law experts: Brett Cohen Partner P: M: +61 (0) E: bcohen@claytonutz.com Margaret Michaels Partner P: M: +61 (0) E: mmichaels@claytonutz.com Pauline Gartlan Special Counsel P: M: +61 (0) E: pgartlan@claytonutz.com Northern Territory Mineral Titles Regulation 3

4 1. The Mineral Titles Act 1.1 A new Act The Mineral Titles Act commenced on 7 November 2011 and repealed the long standing Mining Act. According to the Explanatory Memorandum for the Mineral Titles Bill 2010, the aim of the Mineral Titles Act was to introduce a mineral titles regime that encourages active exploration, turn over of land and the active development of known mineral deposits in the Northern Territory, with a view to further strengthening the significant contribution of the resources industry to the Territory's economy. While it was acknowledged that the repealed Mining Act remained functional and served its intended purpose of providing a regime for the administration mineral titles, it was observed by the Minister that certain aspects of the repealed Mining Act were outdated. It was also intended that the new Mineral Titles Act provide an opportunity to reformat the legislation, making it easier to read and more logical in approach. In the course of reviewing the Mining Act, submissions were received from various stakeholders that formed the basis of the booklet "Northern Territory Mining Act - Recommendations for Change" published in March Many of the recommendations were adopted in the formation of the Mineral Titles Act and the Mineral Titles Regulations. 1.2 Significant changes Substantial parts of the repealed Mining Act that operated effectively were retained. The more significant changes introduced by the Mineral Titles Act and Mineral Titles Regulations include the following: Rationalising or abolishing a range of historical tenements of various types that the Territory Government observed were not being actively explored, mined or were otherwise inactive (see section 1.6). The abolition of mineral claims under the repealed Mining Act. The Minister observed in the second reading speech of the Mineral Titles Bill 2010 that activities carried out on a mineral claim are not significantly different to those carried out on a mineral lease. Mineral claims are to be converted to an exploration license or a mineral lease, depending on the use of the mineral claim (see section 1.6(a)). A concept of preliminary exploration has been introduced, with the intention of further enabling the potential of land to be assessed for future mineral exploration. Explorers may now in certain circumstances conduct exploration activities on land without a mineral title (see section 2.1). Mineral exploration licences, that previously could only be renewed for a maximum two terms of two years, may now be renewed for ongoing periods (see section 2.2). Mineral titles generally can be renewed for ongoing periods subject to Ministerial approval. This allows bona fide proponents more time to complete their exploration and feasibility programmes before progressing to mining and development. This is balanced however by more stringent operational conditions, including tighter expenditure requirements and penalties for non-performance (see sections 6.3 and 6.13). The Mineral Titles Act provides for a more flexible regime for dealings and the transfer of mineral titles, including a clearer regime for the registration of Northern Territory Mineral Titles Regulation 4

5 agreements and mortgages affecting mineral titles (see section 6.5). For example, unlike under the repealed Mining Act, the Mineral Titles Act permits the transfer of applications relating to mineral titles. The Territory Government has stated that the aim of these changes is to strengthen investor security and provide greater clarity in the rules applying to the transfer of mineral titles. Disputes in relation to mineral titles will no longer be heard by the Mining Wardens in the Warden s Court, that has been abolished. The Land, Planning and Mining Tribunal (the Tribunal) now hears disputes in relation to mineral titles (see section 6.13). The introduction of various penalties for non-compliance with conditions of mineral titles or applicable laws or regulations (see section 6.13). 1.3 Types of mineral titles The Mineral Titles Act provides for the following mineral titles: mineral exploration licences (EL) - see section 2.2; mineral exploration licences in retention (ELR) see section 2.3; extractive mineral exploration licences (EMEL) see section 2.4; mineral leases (ML) see section 3.1; extractive mineral permits (EMP) see section 3.2; extractive mineral leases (EML) see section 3.3; and mineral authorities on reserved land (MA) see section Ownership of minerals within the Territory All minerals located in the Territory (except for certain prescribed substances including uranium) are the property of the Northern Territory Crown. Section 3 of the Minerals Acquisition Act 1953 (NT) (previously the Minerals Acquisition Ordinance 1953 (NT)) (Minerals Acquisition Act) vested the following in the Crown of the Commonwealth: "All minerals existing in their natural condition, or in a deposit of waste material obtained from any underground or surface working, on or below the surface of any land in the Territory not being minerals, which, immediately before the commencement of this Act, were the property of the Crown or of the Commonwealth, are, by force of this Act, acquired by, and vested absolutely in, the Crown in right of the Commonwealth." From 1 July 1978, pursuant to section 69 of the Northern Territory (Self Government) Act 1978 (Cth) the Crown of the Northern Territory holds all the interests of the Commonwealth in the minerals referred to in section 3 of the Minerals Acquisition Act. The definition of "mineral" in section 2 of the Minerals Acquisition Act includes "all mineral substances, gold, silver, copper, tin and other metals, ores or other substances containing metals or minerals, and gems, precious stones, coal, shale, mineral oils and valuable earths and substances. Northern Territory Mineral Titles Regulation 5

6 Uranium however is treated differently from other minerals. The ownership of uranium (and other prescribed substances) in the Territory was vested in the Commonwealth Crown under the Atomic Energy Act 1953 (Cth), and under the Mineral Titles Act the Territory Minister must exercise his powers in relation to prescribed substances in accordance with the advice of the Commonwealth Minister at the time Extractive and non-extractive minerals The Mineral Titles Act applies generally to the mining of all minerals other than certain prescribed substances. As under the repealed Mining Act, the Mineral Titles Act distinguishes between non-extractive minerals and extractive minerals, and deals with both substances separately. This is seen as necessary to protect extractive materials required for road construction, maintenance and other infrastructure. (a) Non-extractive minerals A non-extractive mineral includes the following substances: a naturally occurring substance obtainable by mining an inorganic element or compound or an organic carbonate compound; coal, lignite, oil shale or salt; or any other substance prescribed by regulation to be a mineral, but does not include any extractive minerals, petroleum (which is independently regulated), water or any other substance prescribed by regulation. 2 (b) Extractive minerals In contrast, an extractive mineral includes soil, sand, gravel, rock or peat and any other substance contained in the Mineral Titles Regulations. 3 The main minerals produced from these extractive minerals are fine and coarse sand, natural gravel, construction rock, crushed rock, porcellanite, clay, soil and dimension stone. A large portion of the Territory's extractive mineral production happens within the Darwin region and this is relevant as it ensures that low-cost materials are available to support construction of new industrial plants, urban development and infrastructure as the city of Darwin expands. 4 Demand for extractive materials to support this development is expected to accelerate significantly. 1.6 Status of titles granted, or applied for, under the Mining Act The commencement of the Mineral Titles Act triggered transitional provisions to change over, convert and deal with any existing mineral titles and applications for mineral titles which were granted or were applied for under the Mining Act. 1 s187 of the Mineral Titles Act. 2 s9 of the Mineral Titles Act. 3 s10 of the Mineral Titles Act. 4 Nigel Doyle, Extractive Minerals Within The Outer Darwin Area - Report 14, December Northern Territory Mineral Titles Regulation 6

7 These provisions also provide for mechanisms to deal with inconsistencies between the two Acts or an existing mineral title or application and the Mineral Titles Act. The principles for transition of titles and applications under section 194(2) of the Mineral Titles Act include: to achieve consistency of mineral titles held under the Mineral Titles Act; to maximise the potential of exploration for, and extraction and processing of, minerals or extractive minerals by ensuring those activities are conducted under appropriate mineral titles; to assess corresponding mineral titles and ensure they authorise appropriate activities to be conducted under the Mineral Titles Act; to facilitate the conversion of: (i) (ii) non-compliant titles to the appropriate mineral titles; and non-compliant existing interests to the appropriate mineral titles or other appropriate interests; to consult with holders of non-compliant titles or non-compliant existing interests to achieve appropriate conversions of the titles or interests; and to allow sufficient time to enable the holders of non-compliant titles or noncompliant existing interests to meet requirements under the Mineral Titles Act. Northern Territory Mineral Titles Regulation 7

8 (a) Existing titles As indicated in the table below, upon the commencement of the Mineral Titles Act, some mining interests that were granted under the repealed Mining Act were automatically converted into new mineral titles under the Mineral Titles Act: 5 Old title under the Mining Act exploration licence exploration retention licence mineral lease rights granted pursuant to section 61(2) of the Mining Act mining lease or special mineral lease granted prior to the commencement of the Mining Act and contemplated by section 191(9) or 191(12) of the Mining Act extractive mineral permit extractive mineral lease miner's right New title under the Mineral Titles Act exploration licence exploration retention licence mineral lease mineral lease mineral lease extractive mineral permit extractive mineral lease mineral authority The automatic conversion process does not apply to mineral titles granted for certain projects, including Rio Tinto's Alcan Gove bauxite project and Xstrata's McArthur River project. Where a corresponding mineral title granted under the Mining Act does not fully comply with a requirements of the Mineral Titles Act, the Minister may: 6 give the title holder a notice recommending a way to achieve compliance; require the title holder to take a specified action to achieve compliance; or if the non-compliance is such that it may be appropriate to convert the corresponding mineral title to another type of mineral title, give the holder of the non-compliant title a notice of conversion. Where an interest granted under the Mining Act is non-compliant under the Mineral Titles Act, the interest continues in force and the Mineral Titles Act has no effect until the Minister converts the title, accepts a surrender of the title or cancels the title. An example of a noncompliant interest is a mineral claim granted under the Mining Act prior to the commencement of the Mineral Titles Act. (b) Existing applications All applications for mineral titles which were made under the Mining Act continue as though they were made under the Mineral Titles Act. 7 5 s202(1) of the Mineral Titles Act. 6 s203 of the Mineral Titles Act. Northern Territory Mineral Titles Regulation 8

9 Where an application for a grant or renewal is for a mineral title or interest which does not exist under the Mineral Titles Act, the Minister will deal with the application by reference to the Mineral Titles Regulations or to the transition provisions under the Mineral Titles Act Exploration titles and preliminary exploration 2.1 Preliminary exploration So as to further enable land to be assessed for future mineral exploration potential, Part 2 of the Mineral Titles Act and Part 2 of the Mineral Titles Regulations introduce a regime for mineral explorers to enter onto land to conduct "preliminary exploration" without having a mineral title. (a) Permitted preliminary exploration activities Preliminary exploration of land may include any of the following activities that do not involve significant ground disturbance: 9 examination of geological characteristics; with the approval of the Minister, airborne geoscientific surveys; removal of small mineral samples for analysis; and marking boundaries for a proposed mineral title application. (b) Notice and consent requirements Preliminary exploration There are notice requirements for conducting preliminary exploration in relation to pastoral leases, native title land and certain Crown land. 10 Consent is required from the landowner or the Minister (as applicable) in relation to reserves and reserved land, private land, Aboriginal land and Aboriginal community living areas. 11 A person who consents to preliminary exploration may impose reasonable conditions on the entry and use of the land. In relation to reserved land, the Minister must take into account the purpose of the reservation before deciding on granting consent for preliminary exploration and any conditions that may be imposed. In relation to private land or a park or reserve, the relevant landowner must not unreasonably withhold consent for preliminary exploration, and any disputes may be referred to the Tribunal. 7 s198(1) of the Mineral Titles Act. 8 s200 of the Mineral Titles Act. 9 s17(3) of the Mineral Titles Act. 10 ss19-20 of the Mineral Titles Act. 11 s21 of the Mineral Titles Act. Northern Territory Mineral Titles Regulation 9

10 For land within the area of an existing title, a person may only conduct preliminary exploration: 12 by notice if the mineral title is an EL, and the preliminary exploration is for extractive minerals; by notice if the mineral title is an extractive EMEL, and the preliminary exploration is for non-extractive minerals; and with the consent of the title holder if the preliminary exploration is (i) for nonextractive minerals on an EL or (ii) for extractive minerals on an EMEL. (c) Preliminary exploration on application area An applicant for an EL or EMEL may conduct preliminary exploration (see section 6.11(b)) in the proposed title area after giving the landowner a preliminary exploration notice 14 days before entering the land to start the exploration 13. It is worth noting that a person (i.e. who is not the applicant) may conduct preliminary exploration in the proposed title area of an EL or EMEL without giving notice to, or obtaining consent from, the relevant applicant Mineral Exploration Licence (EL) A mineral exploration licence (EL) is the primary title issued for the purpose of conducting exploration activities for non-extractive minerals. (a) Title holder rights - EL A EL grants the title holder the right to occupy and exclusive rights to conduct exploration for minerals on the area of the EL. The EL holder also has the exclusive right to apply for a mineral lease (ML) for all or part of the EL area. 15 An EL holder may conduct activities in connection with exploring for minerals including: 16 digging pits, trenches and holes, and sinking bores and tunnels in the mineral title area; activities for ascertaining the quality, quantity or extent of other material in the title area by drilling; and extracting and removing samples of ore and other substances from the title area in amounts necessary to evaluate the potential for mining in the title area, in large samples with Ministerial approval. (b) Application - EL 12 s22(1) of the Mineral Titles Act and r14 of the Mineral Titles Regulations. 13 r16(2) of the Mineral Titles Regulations. 14 s22(2) of the Mineral Titles Act and r15 of the Mineral Titles Regulations. 15 s26 of the Mineral Titles Act. 16 s29 of the Mineral Titles Act. Northern Territory Mineral Titles Regulation 10

11 A person may apply to the Minster for an EL for a term of up to 6 years. The application must be made in the prescribed form and must include: 17 a description of the blocks the application requires the EL to cover; and a technical work program for the first 2 operational years. The area of the EL must be between 4 and 250 (adjoining) blocks, although the Minister may grant a title area of less than 4 blocks if circumstances justify it. 18 For the purposes of the Mineral Titles Act, a block is approximately 3.43 km A person must not apply to the Minister for the grant of an EL over an area which was the subject of another (previous) EL within 30 days from the date of the expiration, surrender or forfeiture of the previous EL. 20 (c) Surrender - EL The area of an EL must be reduced every 2 operational years during the term of the EL and any renewal period of the EL. 21 The title holder must nominate to reduce the number of blocks in the title area by at least 50% (adding 1 block in the case there are an odd number of blocks). 22 An EL holder may apply to the Minister for an exemption from the surrender requirements. If successful, the Minister may direct for the surrender requirements to be deferred or reduced or to exempt the EL holder from satisfying the requirements. 23 (d) Renewal - EL In order to renew an EL, the title holder must apply to the Minister using the prescribed form prior to the expiration of the EL. An EL may be renewed for a period of 2 years, and may be renewed more than once. 24 This is a significant difference to the treatment of ELs under the old Mining Act, which only allowed 2 renewal periods of 2 years s27 of the Mineral Titles Act; Approved Form 1 - Application - Exploration Licence. 18 s28 of the Mineral Titles Act. 19 s16 of the Mineral Titles Act. 20 s65(2) of the Mineral Titles Act. 21 s29(2) of the Mineral Titles Act. 22 s29(3) of the Mineral Titles Act. 23 s29(4) of the Mineral Titles Act. 24 s30(2) of the Mineral Titles Act. 25 s29a Mining Act. Northern Territory Mineral Titles Regulation 11

12 (e) Conditions - EL Upon grant, the EL holder must comply with any conditions attached to the EL as imposed by the Minister or as prescribed by the Mineral Titles Act and Mineral Titles Regulations (see section 6.2). In that regard, under the specific conditions imposed on an EL the holder must: 26 give underlying landowners or occupiers of the title area (where applicable) 14 days' notice prior to commencing activities under the EL. This notice, that must be given in accordance with the Mineral Titles Regulations, must note the EL holder's intention to start conducting activities and to enter onto the EL area to conduct activities; carry out the work necessary for the discovery and assessment of the value of the minerals in accordance with the relevant technical work program; comply with minimum expenditure requirements (see section 6.3)); within 28 days of a discovery, give the Minster notice of a discovery of: (i) (ii) a mineral of economic or scientific interest; and underground water (and provide samples and data upon request); only extract or remove substances that are authorised to be extracted or removed; and only sell minerals discovered in the title area if the sale has been approved by the Minster. (f) Expenditure - EL The title holder of an EL must comply with the expenditure requirements contained in the title instrument and provide the Minister with an expenditure report each year which contains the following information: 27 the amount the title holder expended on technical work in that operational year; and the amount the title holder intends to expend in the next operational year. The Mineral Titles Regulations set out the due dates of these reports to be lodged and the late fees payable where deadlines are not met. If the holder of an EL breaches expenditure conditions in respect of a mineral title for an operational year when the mineral title must be reduced (see section 2.2(c)), the Minister need not consider an application to waive all or part of the required reduction. If the EL holder breaches expenditure conditions in respect of a mineral title for two consecutive years, the Minister may take steps to cancel the EL in accordance with section 105(2)(e) of the Mineral Titles Act (see section 6.8). 26 s32 of the Mineral Titles Act. 27 r81 of the Mineral Titles Regulations; Approved Form 17 - Mineral Exploration and Mining Expenditure Reporting. Northern Territory Mineral Titles Regulation 12

13 The holder of multiple ELs may apply to the Minister for approval of an "expenditure project area" in relation 2 or more of the ELs within a single project area. 28 This allows a holder of ELs to aggregate the area of the ELs for the purpose of making and reporting expenditure. Non compliance with expenditure conditions within an expenditure project area may result in the cancellation of the expenditure project area approved Mineral Exploration Licence in Retention (ELR) Upon being satisfied that an ore body of economic potential exists in the area of an EL, and that mining minerals in the area is not currently commercially viable or more feasibility work is required, the Minister may designate an area of an EL as a mineral exploration licence in retention (ELR), thereby effectively extending the term of an EL. (a) Title holder rights - ELR The rights under an ELR are substantially the same as for an EL. An ELR gives the title holder the right to occupy, exclusive right to continue conducting EL activities and exclusive right to apply for a mineral lease for all or part of the area specified in the instrument. 30 An ELR title holder may also carry out any studies and tests needed to assess the development potential of ore bodies or anomalous zones in the title area for the evaluation of the commercial viability of mining and processing minerals. 31 (b) Application - ELR An EL holder may apply to the Minister for a ELR for a term not exceeding 5 years if the following conditions have been satisfied: 32 an ore body of possible economic potential has been found in the title area; and the title holder reasonably believes that mining minerals in the title area is not commercially viable or further work is required for assessing its feasibility. The Minister may designate an EL as an ELR if satisfied of the above matters, and that the applicant will have the technical and financial capacity to develop and mine the ore body. An ELR application must be made during the term of the relevant EL, made in the approved form and must include the following information: 33 a description of the proposed title area; and a technical work program for the first year of operation. An ELR application may be made in relation to all or part of the area covered by an EL r80(1) of the Mineral Titles Regulations. 29 r80(3) of the Mineral Titles Regulations. 30 s34 of the Mineral Titles Act. 31 s37(2) of the Mineral Titles Act. 32 s34(5) of the Mineral Titles Act; Approved Form 2 - Application - Exploration Licence in Retention; 33 s33 of the Mineral Titles Act. Northern Territory Mineral Titles Regulation 13

14 If an ELR is issued in respect of the whole title area of a EL, the ELR will effectively replace the EL. If an ELR is issued in respect of part of the title area, the EL will continue on foot in respect of the remaining part of the EL area. 35 (c) Renewal - ELR An ELR holder may apply to the Minister to renew the ELR for a period up to 5 years, and the ELR may be renewed more than once. 36 (d) Conditions - ELR An ELR holder must comply with the conditions attaching to an EL (including minimum expenditure requirements (see section 6.3) and any additional conditions imposed by the Minister (see section 6.2). 37 The holder must also provide the Minister with a reserves report between 1 July and 14 July each year. 38 It is a specific condition of an ELR that, once the mining and processing of minerals in the title area of the ELR becomes commercially viable, the ELR holder must apply to the Minister for an ML. (e) Expenditure - ELR The title holder of an ELR must comply with the expenditure requirements contained in the title instrument and provide the Minister with an expenditure report in the prescribed form each year which contains the following information: 39 the amount the title holder expended on technical work in that operational year; and the amount the title holder intends to expend in the next operational year. The Mineral Titles Regulations set out the due dates of these reports to be lodged and the late fees payable where deadlines are not met. As with an EL, failure to comply with expenditure conditions may result in the cancellation of the ELA (see section 2.2(f)). (f) ML application and forced cancellation of ELR If the Minister is satisfied that the mining and processing of minerals in the area of an ELR is commercially viable, the Minster may give notice requiring the ELR holder, within a specified period of time, to deliver written reasons why the ELR holder has not applied for an ML, or apply for an ML. The Minster may cancel an ELR if: 34 s33(1) of the Mineral Titles Act. 35 s35 of the Mineral Titles Act. 36 s36 of the of the Mineral Titles Act. 37 s38 of the Mineral Titles Act. 38 r83 of the Mineral Titles Regulations. 39 r81(2) of the Mineral Titles Regulations; Approved Form 17 - Mineral Exploration and Mining Expenditure Reporting. Northern Territory Mineral Titles Regulation 14

15 no reasons are provided why the ELR holder has not applied for an ML; no ML application is made; or having regard to the reasons submitted by the ELR holder, the Minister is satisfied in the interests of the Territory that the ELR should be cancelled Extractive Mineral Exploration Licence (EMEL) An extractive mineral exploration licence (EMEL) is the title issued for the purpose of conducting exploration activities for extractive minerals. (a) Title holder rights - EMEL An EMEL gives the title holder the right to occupy the title area and exclusive right to conduct exploration for extractive minerals. 41 An EMEL holder has the right to conduct activities in connection with exploration for extractive minerals as are reasonable necessary for exploration and any other activities specified in the EMEL instrument. 42 An EMEL holder also has exclusive right to apply for either of the following for all part of the area of the EMEL: 43 an extractive mineral permit (EMP) for the extraction of extractive minerals from the natural surface of the land only (see section 3.2); or extractive mineral lease (EML) for the mining of extractive minerals (see section 3.3). (b) Application - EMEL A person may apply to the Minster for the grant of an EMEL for a term of up to 2 years in the prescribed form and the application must include: 44 a description of the blocks comprising the proposed title area (which must not exceed 4 blocks); and a technical work program for the proposed term and an estimate of the proposed exploration expenditure. (c) Renewal - EMEL An EMEL is not renewable s39 of the Mineral Titles Act. 41 s46(1) of the Mineral Titles Act. 42 s48 of the Mineral Titles Act. 43 s46(1)(c) of the Mineral Titles Act. 44 s47 of the Mineral Titles Act; Approved Form 4 - Application - Extractive Mineral Exploration Licence. 45 s47(4) of the Mineral Titles Act. Northern Territory Mineral Titles Regulation 15

16 (d) Conditions - EMEL Upon grant, the EMEL holder must comply with any conditions attached to the EMEL as imposed by the Minister or prescribed by the Mineral Titles Act and Mineral Titles Regulations (see section 6.2). It is a specific condition of an EMEL that the holder give underlying landowners or occupiers of the title area (where applicable) 14 days' notice prior to commencing activities under the EMEL. The notice, that must be given in accordance with the Mineral Titles Regulations, must note the EMEL holder's intention to start conducting activities and to enter onto the title area to conduct activities Mineral production titles 3.1 Mineral Lease (ML) A mineral lease (ML) is the primary title issued for the commercial exploitation of nonextractive minerals and the development of non-extractive mineral projects. (a) Title holder rights - ML An ML holder has the right to occupy, and the exclusive right to conduct the following activities in, the area of the ML: 47 mining for minerals and other activities specified in the Mineral Titles Act; exploration for minerals; the evaluation, processing or refining of minerals; treatment of tailings and other material; the storage of waste and other material; the removal of minerals; activities that are ancillary to mining conducted under another ML granted to the title holder (e.g. operating a treatment plant); and any other activities approved by the Minister and specified in the ML instrument. (b) Application - ML A person may apply to the Minster for an ML in the prescribed form and the application must contain: 48 a description of the land comprising the proposed ML area; 46 s49 of the Mineral Titles Act. 47 ss40 and 44 of the Mineral Titles Act. 48 s41 of the Mineral Titles Act; Approved Form 3 - Application - Mineral Lease. Northern Territory Mineral Titles Regulation 16

17 evidence of an ore body of likely economic value in the proposed area, unless the ML is required to conduct activities that are ancillary to the mining conducted under another ML (e.g. operating a treatment plan); and a summary of the mining work proposed. The Minister may grant an ML for a term the Minster considers appropriate. (c) Renewal - ML An ML holder may apply to renew all or part of the ML prior to the expiry of the term and, if granted, an ML will be renewed for a period the Minster considers appropriate. An ML may be renewed more than once. 49 (d) Conditions - ML Upon grant, the ML holder must comply with any conditions attached to the ML as imposed by the Minister or prescribed by the Mineral Titles Act and Mineral Titles Regulations (see section 6.2). A ML holder must meet annual minimum expenditure requirements and provide annual reports to the Minister (see section 6.3). The specific conditions that attach to an ML include requirements that the ML holder: 50 meet the requirements of any contractual arrangements entered into with the Territory relating to the mining and development of mineral deposits in the title area and the processing of the minerals; and conduct authorised activities in relation of the ML area in a way that interferes as little as possible with the rights of other occupiers of land in the vicinity of the ML area. An ML holder must also provide the Minister with a production report and a reserves report between 1 July and 14 July each year. 51 (e) Expenditure - ML An ML holder must comply with the expenditure requirements contained in the title instrument and provide the Minister with an expenditure report in the prescribed form each year which contains the following information: 52 the amount the ML holder expended on technical work in that operational year; and the amount the ML holder intends to expend in the next operational year. The Mineral Titles Regulations set out the due dates of these reports to be lodged and the late fees payable where deadlines are not met. 49 s43 of the Mining Act. 50 s45 of the Mineral Titles Act. 51 r84 of the Mineral Titles Regulations. 52 r81(2) of the Mineral Titles Regulations; Approved Form 17 - Mineral Exploration and Mining Expenditure Reporting. Northern Territory Mineral Titles Regulation 17

18 3.2 Extractive Mineral Permit (EMP) An extractive mineral permit (EMP) is issued for the extraction of extractive minerals from the natural surface of the land only (being usually for the extraction of sand, gravel, rock or soil). An extractive mineral lease (see section 33.3) on the other hand allows the mining of extractive minerals. (a) Title holder rights - EMP An EMP gives the holder the right to occupy the title area, the exclusive right to extract (from the natural surface of the land only) extractive minerals and the exclusive right to apply for an extractive mineral lease (that would allow mining of extractive minerals) for all or part of the title area. 53 An EMP gives the title holder the right to temporarily store and process extractive minerals, remove extractive minerals from the EMP area and perform any other related activities specified in the EMP instrument. 54 (b) Application - EMP A person must apply to the Minster for the grant of an EMP in the prescribed form. The application must include a description of the title area including the land (which must not exceed 100 ha) and a summary of the work proposed to be carried out. The Minister may grant an EMP for a term not exceeding 5 years. 55 (c) Renewal - EMP An EMP holder may apply to renew the EMP, or part of the EMP, at any stage during its term. An EMP may be renewed for a term of up to 5 years and may be renewed more than once Extractive Mineral Lease (EML) An extractive mineral lease (EML) is issued for the mining of extractive minerals and is generally granted for longer term quarry type operations. An extractive mineral permit (see section 33.2) on the other hand restricts extraction to the natural surface of the land. (a) Title holder rights - EMP An extractive mineral lease (EML) is a mineral title that grants the title holder the right to occupy the title area and the exclusive right to conduct mining for extractive minerals. 57 An EML holder is also authorised to conduct the following other activities in connection with the conducting of mining activities: 58 processing of extractive minerals; 53 s50(1) of the Mineral Titles Act. 54 s53 of the Mineral Titles Act. 55 s51 of the Mineral Titles Act; Approved Form 5 - Application - Extractive Mineral Permit. 56 s52 of the Mineral Titles Act. 57 s54 of the Mineral Titles Act. 58 s57 of the Mineral Titles Act. Northern Territory Mineral Titles Regulation 18

19 removal of extractive minerals; storage of waste and other material; and any other related activities approved by the Minister and specified in the EML instrument. (b) Application - EMP A person must apply to the Minster for the grant of an EML in the prescribed form. The application must include a description of the land comprising the proposed title area (which must not exceed 100 ha) and a summary of the work proposed to be carried out. 59 The Minister may grant an EML for a term not exceeding 10 years. 60 (c) Renewal - EMP The title holder may apply to renew the EML or part of the EML before the expiry of the EML. An EML may be renewed for a term of up to 10 years and may be renewed more than once Mineral titles on reserved land - Mineral authority (MA) The Minister may declare reserves in the Territory that exclude certain land from particular exploration or mining activities (see section 6.10). Exploration for, or mining of, a particular mineral may be excluded for example. The declaration of a reserve however does not necessarily mean that the land is completely excluded from exploration and mining activities. A mineral authority (MA) may be declared by the Minister in respect of general reserved land. An MA is a mineral title that corresponds to a mineral title that may be otherwise granted under the Mineral Titles Act. (a) Application - MA A person may apply for a MA in accordance with the Mineral Titles Act to use certain reserved land for mineral exploration or mining activities. 62 An MA granted in these circumstances will be subject to similar obligations, and have similar conditions, to a normal corresponding mineral title unless the Minister determines otherwise. As indicated in the table in section 1.6, a MA also replaces a miner's right under the Mining Act s55 of the Mineral Titles Act; Approved Form 6 - Application - Extractive Mineral Lease. 60 s55(3) of the Mineral Titles Act. 61 s56(3) Mineral Titles Act. 62 s118 of the Mineral Titles Act. 63 s118(2) of the Mineral Titles Act. Northern Territory Mineral Titles Regulation 19

20 (b) Renewal - MA The Minister may grant or renew an MA for a period the Minister considers appropriate. 64 (c) Application for ML, EMP or EML A holder of a MA that corresponds to an exploration title (i.e. an EL or EML) may apply for the grant of an ML (in the case of EL) or an EMEL or EMP (in the case of an EML). Upon the grant of an ML, EMEL or EMP (as appropriate) in these circumstances, the reservation of the land declared by the Minister ceases to have effect in relation to the title area Access and infrastructure The Mineral Titles Act grants potentially strong rights of access and occupation to holders of mineral titles for the purpose of accessing mineral titles, the use of water and constructing infrastructure associated with exploration and mining activities. (a) Access and road construction A title holder has the right to access the title area by the shortest practicable route from any of the following: 66 a council or Northern Territory owned road; a railway line; an airstrip; and sea or waterway. For the purpose of accessing the title area, a mineral title holder may enter land to construct or maintain a road, or do other work, that enables the title holder to have access to the title area. 67 (b) Access authorities for infrastructure An mineral title holder has the right to enter land outside the title area to construct, maintain and use infrastructure associated with mining and exploration activities if the title holder also holds an "access authority" for the relevant land. 68 The potential scope of an access authority is therefore quite wide. A title holder may apply for an access authority by satisfying each of the following at least 14 days prior to making the application: s118(5) of the Mineral Titles Act. 65 s120 of the Mineral Titles Act. 66 s83 of the Mineral Titles Act. 67 s83(2) of the Mineral Titles Act. 68 s84(1) of the Mineral Titles Act. 69 s84(3)(a) of the Mineral Titles Act. Northern Territory Mineral Titles Regulation 20

21 providing written notice of its intention to apply to any affected landowner and any mineral title holder; publishing a notice of its intention to apply in a newspaper within the area the land is situated; and obtaining the consent of relevant landowners. The Minister may grant an access authority to the title holder subject to the conditions specified in the access authority if the Minister is satisfied that the application process has been complied with, and the proposed infrastructure is necessary for conducting mining activities. 70 (c) Rights to use and take water The holder of a mineral title has the right to: 71 within the title area, take or divert water (other than water artificially conserved by or for a landowner in the title area e.g. a dam or well) or sink a bore or well and extract water from the bore or well; and use that water in connection with mining and exploration activities conducted in the title area. A mineral title holder also has, in relation to the title area or an EL or EMEL held by another person, the right to use water in those other title areas as necessary for conducting mining and exploration activities under the holder's mineral title. 72 As noted above, a mineral title holder may apply for an access authority to enter land which is outside the title area. The access authority may be used by the mineral title holder to enter land and construct infrastructure for the taking of water. Under the Northern Territory Water Act mining operations are exempt from licensing for consumptive use. 73 However, under the Mining Management Act the operator of a mine site is required to submit a Mining Management Plan for approval, detailing potential environmental impacts of the operation and how these will be managed. 74 Details of water requirements and management issues should be included in the Mining Management Plan and will also be required in relation to the Northern Territory environmental assessment process. 70 s85(4) of the Mineral Titles Act. 71 s81 of the Mineral Titles Act. 72 s82 of the Mineral Titles Act. 73 s7 of the Water Act. 74 s35(3) of the Mining Management Act. Northern Territory Mineral Titles Regulation 21

22 6. General provisions applying to mineral titles 6.1 Applications generally In addition to any specific requirements that may apply in relation to an application for a particular mineral title, the general criteria that applicants must meet in order to apply for a mineral title are as follows: 75 the applicant must have given the Minister all the information required by the Minister to make a proper decision; the applicant must have complied with requirements under the Mineral Titles Act; where the applicant already holds, or previously held, one or more mineral titles at the time of the application the applicant must have: (i) (ii) (iii) complied substantially with the conditions of each mineral title, to the extent required by the Minister; paid all outstanding fees and rent in relation to the relevant mineral titles and complied with rehabilitation requirements for the title area; and complied substantially with the rehabilitation requirements imposed under the Mining Management Act (NT) in respect of the title area; and where the applicant is currently engaged in negotiations under the Aboriginal Land Rights (Northern Territory) Act 1976 (Cth) or the Native Title Act 1993 (Cth) in relation to a mineral title, the Minister must be satisfied that the applicant is actively negotiating in good faith. A person may not apply for a mineral title in respect of a title area which is already the subject of a mineral title 76 except in permitted circumstances under the Mineral Title Regulations Conditions applying to mineral titles Specific conditions in relation to particular mineral titles are imposed by the Mineral Titles Act. Conditions that are imposed generally on all mineral titles in Part 5 of Division 4 of the Mineral Titles Act include (but are not limited to) conditions: requiring compliance with applicable laws; prohibiting the disturbance of improvements to the land without consent; for the protection of animals owned by, or under the control of, landholders; requiring notification to be made to the Minister of the recovery of drill cores, cuttings or geological samples; and 75 s58 of the Mineral Titles Act and r44 of the Mineral Titles Regulations. 76 s65(3) of the Mineral Titles Act. 77 See division 3 of the Mineral Titles Regulations. Northern Territory Mineral Titles Regulation 22

23 requiring the title holder to provide the Minister with reports concerning activities conducted and expenditure made in relation to mineral titles. The Minister may include conditions in a mineral title instrument as the Minister considers appropriate, including conditions requiring the title holder to obtain the Minister s approval before taking particular action. 78 A condition on a mineral title may be amended, suspended or removed. This may be done at the initiation of the Minister or on application by the mineral title holder Expenditure requirements generally (a) Types of expenditure that may be claimed Guideline 6 - Benchmark Minimum and Admissible Expenditure published by the Territory Department of Resources provides examples of the expenditure types which may be claimed against expenditure commitments for mineral titles. The categories of acceptable expenditure include: geological activities and prospecting; geochemical activities; geophysical and remote sensing activities; drilling; bulk sampling and earth works; rehabilitation; pre-feasibility including metallurgical and environmental; office studies; overheads; and preliminary airborne exploration. Guideline 6 also provides a list of non-admissible expenditure (i.e. expenditure that cannot be claimed) which includes the following: land access negotiations (e.g. compensation, site clearance and negotiation costs); rent for mineral titles; fines and late lodgement fees; insurance; transfer costs; marketing costs (either for the title or the commodity); 78 s85(2) of the Mineral Titles Act. 79 s100 Mineral Titles Act. Northern Territory Mineral Titles Regulation 23

24 costs of raising capital or floating a company e.g. preparing prospectuses; title searches; costs of transfers, dealings or joint ventures concerning mineral titles; costs of compliance with stock exchange disclosure obligations; legal costs; bonds and security deposits; advertising; training not directly related to the relevant mineral title; data capture where the data is not supplied to the Department in the correct format; purchase of data or reports where these are not supplied to the Department in the correct format; costs or attending or sponsoring conferences; tenement management or administration fees; and salaries and wages of staff not engaged on activities related to the relevant mineral title. (b) Compliance with expenditure conditions Not complying with expenditure requirements may render a mineral title liable for cancellation due to breaching a condition of the mineral title (see section 6.8). If a holder has not complied with an expenditure condition in respect of a mineral title for an operational year, the mineral title holder may apply to the Minister for a variation o the condition under section 100(3)(b) of the Mineral Titles Act. (c) Amalgamated reporting A title holder of two or more mineral titles may apply to the Minister to amalgamate its expenditure reports, and report on a consolidated basis, if any of the following apply: 80 the expenditure reports relate to titles held by the title holder; the titles are either all ELs, MLs or ELRs; and the title areas are adjoining or substantially contiguous. 6.4 Mineral titles register The Minister must keep a mineral titles register (Register) which records the following information in relation to mineral titles: r87(2) of the Mineral Titles Regulations. 81 s121 of the Mineral Titles Act. Northern Territory Mineral Titles Regulation 24